You got to know when to hold ’em…
Kenny Rogers would say “You got to know when to hold them, and when to fold them.”
The usual suspects were all available;head fakes, traps, support and resistance.
Our market tends to range more than it trends, so I am always looking for hidden pivots.
The market loves to hit the middle traders lately, and breakdowns or breakouts at major pivots have been reluctant to follow through. The 75 was marginally broken, and the 63.25 pivot held strong.
Many gurus can point out the basics of fibonacci, but fail to grasp the step by step movements. No one is good enough to get every twist and turn correct, but it is possible to get a high degree of accuracy wthe some blood, sweat, and tears.
Look at various time frames and use your “intuition” to see where the hidden lower low 123 or high comes in. They did one of each today, and we had the boundaries pretty well contained.
Having a plan B is always helpful. Knowing where the back up targets are can get you back your stop loss and then some. This is not “revenge trading” but calculated reversal points at normal profit taking areas. We can never be sure which one is the right one, but we can give it a shot.
We called 63.25 as support, and 74.5 as opening resistance. Half gap and the the gap is our normal play. The premarket entry was at the 75 area, relating to the big number “range”. 79 to 81 was called as possible secondary resistance. The opening magnet (a proprietary calculation) was 63.5, so this got us in the right neighborhood. The calls were made on twitter and the record speaks for itself.
The 75 was “too obvious in the afternoon, and we saw the jam of the shorts there. The lunch trade completed by 78 , and caught both weak shorts and late, pullback longs.
What a game.
Another day of easily + 1,000 in profits with just one contract.
Conservative trades, including the late “off by 66”. The Piker’s bounce in the last 10 minutes was merciless on the late day shorts.
We avoid that by trailing on that short and then standing aside at the end of day on friday.
Enjoy the weekend all.